Xi Jinping seeks to strengthen economic ties during tour of south-east Asia

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1. Xi Jinping is due to begin a tour of South East Asian countries including Cambodia, Vietnam and Malaysia. Trade policy will play an important part in these visits as governments seek to respond to Donald Trump’s announcement, and subsequent suspension, of tariffs on goods imported to the US. This will be his first visit to Malaysia in 9 years, and his first visit to Cambodia in 12 years.

2. The 9 dash line won’t be helping

3. These aren’t just trade negotiations, these are clear-cut alliances being formed. When the US administration said “do not retaliate against tariffs”, that was a signal for them to see who the US will be allied with. The US basically told the world that Taiwan is its own sovereign country capable of negotiating tariffs. China is seeing who they can be allied with, but not sure they will see many allies within their neighboring countries.

   Vietnam looks to be with the US, but we will see where they land. This is going to get real ugly, really fast. The US looking to push China into a corner to incite a reaction.

4. The CCP is about to find out the Southeast Asian countries, as well as others, are more interested in taking their current exports of high value manufactured goods to the US/West, instead of being banana/durian farmers for the CCP.

5. Will certainly be impressive if Xi manages to forge a long lasting economic bond with the nations he’s openly antagonized for the past decade.

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